I always wonder why a lot of people fomo to buy a coin or token after the price has pumped. In this present bull run I've seen a lot of people FOMO and buy cryptos at a really high price and they quickly dump when they witness drawdowns.
Isn't that just hustling backwards?? Its almost like they are trying to loose money on purpose.
So i wonder why they FOMO to buy in the first place
Not all people have the same psychology. Unfortunately, there are a lot of people who FOMO or panic sell. These people are afraid of missing the chance of increasing their money. They see that many people are making an investment and making profit. They want to do it also. Then if the coin price starts going down, they start panicking. They are rushing things and this time they start panic-selling.
Emotions leads them to create FOMO, they are trying to ride with the train without really knowing the reason why the project is moving, there are articficial pumped that being followed by lazy traders.
Once the value start to dropped this same people who fears to lose more after buying at the peak are the one that will sell out.
fomo events will drain the emotions of traders. when the fomo occurs, traders rush to buy the coin so as not to lose the moment, especially traders without knowledge, they buy and don't immediately leave the market, until finally an anti-climax occurs and the price crashes. From that incident, of course, many people were happy, but there were also many who suffered